New Markets Tax Credits
for Science Facilities

The NMTC for Science Facilities funds stimulates unique ventures in distressed localities

The Science Facilities New Markets Tax Credit program is a US federal government assistance plan designed to incentivize investments into low-income places, generating approximately 25% of venture fees in adjustable, below market funding that is generally forgiven at the end of the 7-year compliance time frame.

The Science Facilities NMTC program encourages financial investments in low-income communities for financial revitalization

NMTC investors make investment decisions in companies called Community Development Entities (CDEs) that successively provide funding to organizations in low-income communities. The objective of the solution is to push desirable financial revitalization in these neighborhoods.

A CBO Financial Subsidiary, Community Development Funding, LLC was one of only 66 teams to earn NMTC allocation in Round 1 in 2003, and among 62 groups to be given an allowance in Round 2 - one of just 10 organizations to receive both 1st and 2nd round allocations. Since then, the CBO team has gone ahead to receive increased allotments for our own CDE, and aided multiple customers with establishing CDEs and efficiently obtaining a direct NMTC allotment award. NMTCs create perks to tax credit investors, businesses that need capital, and state and city government and economic advancement authorities.

Important considerations for NMTCs lending for Science Facilities

Our firm is here to help you with any questions you may have. Do not hesitate to submit a Free Project Analysis Request for more thorough details concerning your specific circumstances.

Science Facilities in a Marginalized Zone

A low-income community is a census tract with a minimum of 20% hardship, or one that has a median family income that is at or below 80% of the area's mean household earnings.

Permitted Science Facilities New Markets Tax Credit Financing

Investments are made in the form of equity-like financing to businesses located in low-income census tracts or ones that primarily serve or primarily utilize low-income individuals.

This funding normally is used as "gap funding" for the development of business, industrial and retail property tasks (consisting of community centers).

Other NMTC jobs might also include for-sale housing designated for moderate-to-low-income families, sustainable technologies, and sustainable, eco-friendly technologies running on a commercial scale.

Ways to Qualify for NMTC Programs for Science Facilities?

There are two methods to connect to the program. To fund a single task, you will require to obtain CDEs that currently have an allotment and have an investment strategy that complements your business model and geographic location.

If you have a relatively large task or a pipeline of projects in need of financing, the very best option is to form a CDE and apply directly for an allocation of NMTCs.

Important Conditions Must Be Met by the Customer to be Accepted for Science Facilities New Markets Tax Credit?

The recipient needs to be a verified Active Low-Income neighborhood company (QALICB), which is an organization that fulfills the following guidelines:

  • It is a for profit corporation or not-for-profit), or a collaboration
  • It actively conducts any service aside from non-commercial rental, projects, sale or licensing of intangibles, golf course, golf club, massage parlor, hot tub facility, suntan facility, racetrack, off-sale alcohol
  • Less than 5% of its assets consist of "collectibles" (e.g., antiques, jewelry, wine, etc).
  • Less than 5% of its properties consist of "financial home" (e.g., stocks, bonds, cash aside from affordable working capital).
  • 40% of its tangible properties are located in a low-income community.
  • 40% of staff member services are conducted in a low-income community.

Learn More Regarding Science Facilities

If you need more specific information concerning New Markets Tax Credit experts get in touch with us now.

Does Your Project Qualify for Low-Cost Financing or New Markets Tax Credits?

Reach out to our specialists to discuss how we can work together.
Get a Free Project Analysis